top of page

HOLD ON!!!!!

If you haven't noticed already this morning, the world's stock markets are down sharply fueled by a collapse in oil prices and continued fear about the coronavirus spreading around the world. The 10-year Treasury Yield which had previously never gone below 1% has fallen 35% today and is now under 0.5%. The reaction is nothing short of an all-out panic. We have counseled our clients time and time again to EXPECT a correction in the markets and now that it's here, we are NOT going to react in the short term. You've heard me talk about the "buckets" and how it's designed to help you weather the storm and right now that's what you should be focusing on. THE MONEY YOU HAVE INVESTED IN THE STOCK MARKET IS NOT NEEDED ANYTIME SOON AND THEREFORE WE ARE NOT FORCED TO SELL. Said differently, anything you are currently withdrawing from your portfolio or may need to withdraw from your portfolio in the near term is going to come from our bond fund portfolio. The basic premise of the "buckets" is to ensure you have enough set aside in less volatile places as we seek to weather the storm and not have to take funds out of the market. Guess what? It's working. There no doubt will be an economic impact from the coronavirus which will slow down growth across many different parts of the world. But we have gone thru times like this in the past and in EACH AND EVERY SITUATION THE MARKETS HAVE HISTORICALLY RECOVERED. We don't know how long it will take but at some point things will stabilize and trading will begin to return to normal. During that time we intend on staying true to our game plan and make decisions based on what our plans tells us to do or not to do instead of emotionally react. I completely understand the emotional response to a day like today is "WE NEED TO TAKE ACTION. WE CAN'T SIT ON OUR HANDS AND DO NOTHING WHILE OUR ACCOUNTS DROP". I get it. But making a change to your portfolio in such a volatile market is NOT the smart move. You have all hired us to help you make smart decisions, not emotional decisions and that's what we intend on doing. We are here to talk in case anyone needs to be helped off the ledge so to speak but truthfully our phones have been relatively quiet which I am taking as a good sign. It means that clients are reading my emails and following their plans. It's scary and nerve wracking and annoying and upsetting but we plan for market volatility! Eventually the number of new coronavirus cases will start retreating and life will return to normal. It could take a few weeks or it could take a few months. In the meantime, we stick to the plan. Together. Warmest regards, Steve All investing involves risk including loss of principal. No strategy assures success or protects against loss. Historical performance is no guarantee of future results.

bottom of page